Bundaberg Sugar to sell for $600million

The biggest sugar cane grower in Australia is reportedly looking for a buyer, citing a rebound in global sugar prices.

The biggest sugar cane grower in Australia - Bundaberg Sugar - is reportedly looking for a buyer, citing a rebound in global sugar prices.

The owner of Bundaberg Sugar, Belgium company Finasucre, has recently disclosed plans for the potential sale of Australia’s largest sugar cane grower.

The Australian Financial Review reported in August 2023 that Bundaberg Sugar owned one of the largest land and water portfolios in the “highly sought-after” Bundaberg region with 13,000ha of highly productive agricultural land and 38,000 megalitres of water entitlements.

When the sale was announced on August 24, 2023 Bundaberg Sugar CEO Guy Basile said in a press statement Bundaberg Sugar would only be one part of the sale which included Bundaberg Walkers Engineering and Bundaberg Molasses, though the companies more recent investments in the macadamia industry would not be included.

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Mr Basile said the sale was prompted by “significant increases in the global sugar price,” coupled with recent years of “substantial investments … made to secure the future of the sugar industry in the region”.

Bundaberg Sugar Ltd CEO Guy Basile.

The company mills more than 1 million tonne of sugar cane annually.

The Financial Review reported the sale would be guided by Lazard Australia’s Campbell Ray and Kidder Williams’ Tim Faulkner.

BUNDY SUGAR: Millaquin Mill in Bundaberg. Photo: Max Fleet / NewsMail

The business, founded in the 1970s through a merger of Fairymead Sugar Company Ltd and Gibson and Howes Ltd, is estimated to generate earnings before interest, tax, depreciation and amortisation of about $25 million next financial year.

When the announcement was made several major sugar stakeholders expressed pleasant surprise, including Canegrowers Chairman Owen Menkens.

“Finasucre’s decision should be seen as a sign of the strength and vitality of Queensland’s sugarcane industry and the international sugar market more generally,” he said in August.

“And, if media reports are correct, it may also be a sign that outside investors are starting to sit up and take serious interest in the emerging opportunities within our industry.”

The Mackay Renewable Biocommodities Plant that Mercurius and the Queensland University of Technology will use to transform sugar into 'drop-in' ready jet and diesel fuels plus chemicals to make industrial plastics. Picture: Contributed

Despite assurances no operational changes would be made within Bundaberg Sugar following the prospective sale, rumours have swirled about a possible transition towards the bioenergy industry.
Bundaberg Sugar is one of the few major sugar cane companies in Qld that has not yet expanded into biofuels and bioenergy.

In August of 2023, Mackay Sugar announced a major push toward biofuels, particularly jet fuels as part of 1019ha development, in a bid to bring “billions” to the state’s economy.

“The decision to put Bundaberg Sugar on the auction block comes after Finasucre received inbound interest in the assets, understood to have come from those eyeing it as a source of green energy,” the Financial Review reported.

Queensland University of Technology Professor Robert Speight at the Mackay Renewable Biocommodities Pilot Plant at Racecourse Mill. Picture: Contributed

When discussing the future of Australian sugar cane as a whole, Canegrowers CEO Dan Galligan said the push towards biofuels could only bring more value to the industry.

“All of those projects across the world are really putting a premium on (sugar cane) fibre and the industry’s interesting dynamic is that the fibre of the cane plant may well become as valuable as the sugar you get out of the cane juice,” Mr Galligan said.

Bundaberg Sugar CEO Guy Basile, Lazard Australia and Kidder Williams were contacted for comment.